The Korea US investment plan will focus on supporting South Korean companies that expand operations in the United States, Industry Minister Kim Jung-kwan said Monday. He explained that the initiative will strengthen bilateral cooperation and promote commercial success for South Korean firms abroad.
Kim stressed that the Korea US investment is not a handout but a strategic plan designed to benefit national industries. During a meeting with CEOs of medium-sized firms, he said the funds will support projects that generate profits and long-term growth.
Both governments will jointly select the projects. A new investment committee, co-chaired by U.S. Commerce Secretary Howard Lutnick and Kim, will manage the process. They will also form a cooperation committee to ensure transparent and efficient investment decisions.
“The $200 billion investment will follow commercial logic,” Kim said. “We will focus on businesses that can sustain profits and strengthen our competitiveness.”
Last week, Seoul and Washington finalized a tariff agreement that includes South Korea’s $350 billion investment pledge. The package contains $200 billion in direct cash investments and $150 billion for shipbuilding cooperation. Both countries set an annual spending cap of $20 billion to maintain fiscal stability.
According to Kim, the Korea US investment will primarily target high-value sectors like semiconductors, green technology, and advanced manufacturing. He added that the program will create new opportunities for South Korean firms in the U.S. market while reinforcing supply chain resilience.
The presidential office announced that both sides are finalizing a memorandum of understanding and a joint fact sheet. These documents will outline the implementation and ensure the investment achieves measurable results.
Economists predict that the Korea US investment will accelerate cooperation between the two nations. They expect the initiative to generate jobs, attract technology partnerships, and deepen mutual trust in trade and innovation.
As the agreement moves forward, Seoul plans to monitor progress closely and adjust its strategy to ensure the investment delivers long-term economic benefits for both countries.
